Gifts from income

Skillst

Me and my wife are looking to purchase our first house. We have some savings to put towards a deposit as well as a gifted deposit. 
As well as my FT salary (approx £40k) my wife's (approx £8k) we also receive £1k a month from my grandparents through a "gifts from surplus income" arrangement. Has anyone had any success factoring in this income or is there a mortgage out there that would take this income into account? 

lspell1

No Lenders will take the gift arrangement into account for affordability unfortunately. The lender will assume that this could stop at any point.

dimbo61

What you have got is a deposit which is increasing by £1,000 a month on top of what ever you can save.
If your grandparents/parents/family have savings earning very poor interest you could look at YBS Offset mortgages !

K_S

Skillst said:

Me and my wife are looking to purchase our first house. We have some savings to put towards a deposit as well as a gifted deposit. 
As well as my FT salary (approx £40k) my wife's (approx £8k) we also receive £1k a month from my grandparents through a "gifts from surplus income" arrangement. Has anyone had any success factoring in this income or is there a mortgage out there that would take this income into account? 

@skillst Unless you can evidence a contractual/legal obligation which requires your grandparents to make that payment every month, I can't think of any lenders who would consider that as income for the purposes of a mortgage.

getmore4less

The gift from income don't have to be monthly they could advance a larger amount to cover a number of months and increase your deposit.

Skillst

Thanks all for the replies. A conversation to be had with my grandparents I think!

[Deleted User]

getmore4less said:

The gift from income don't have to be monthly they could advance a larger amount to cover a number of months and increase your deposit.

It does if the grandparents are trying to keep within IHT rules. 
https://www.gabyhardwicke.co.uk/briefing-notes/inheritance-tax-exemption-for-gifts-out-of-surplus-income/

getmore4less

Deleted_User said:

getmore4less said:

The gift from income don't have to be monthly they could advance a larger amount to cover a number of months and increase your deposit.

It does if the grandparents are trying to keep within IHT rules. 
https://www.gabyhardwicke.co.uk/briefing-notes/inheritance-tax-exemption-for-gifts-out-of-surplus-income/

There is plenty of option that allow the surplus to be lump sums on a longer periods of "regular" they don't have to be constant amounts they can be variable  also surplus can be looked at over longer periods than a single year.
HMRC are open to delayed capitalisation of surplus so gifts from income don't have to align with the timing of the income. 

Bulking up a year's worth and moving to annual would fit, depending on the sources of surplus there may be other options.